Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
Subscribe
Money Investors
Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
  • Money

How to make money building and renting vacation homes

  • September 24, 2022 8:50 AM
  • Augus Curtis
Home rent
Total
0
Shares
0
0
0

When it comes to purchasing a residential lot, the reasons for building a house can be numerous, from living in it to establishing an estate, or earning extra money through your rent.

Many people choose to invest in more than one home, specifically building a vacation home to enjoy vacation periods and get out of the routine, but also to take advantage of and rent it when it is not planned to live in it.

The demand for vacation homes in Latin America is increasing, and this trend is expected to continue, so it is the perfect time to invest in a property for this purpose. 

This type of investment has existed for more than 45 years, and is present almost everywhere in the world, being a success, and even more so now thanks to media such as Airbnb and Vrbo.

In this article, we will mention how you can take advantage of your investment to acquire residential land and build a vacation home that generates constant income.

Also read: What is a real estate market study?

Table of Contents

  • What are vacation homes?
    • Advantages of building a vacation home
      • 1. Double benefit: vacation and produce an income
      • 2. The demand for vacation homes is on the rise
      • 3. Produces a consistent return on investment
  • How to make money renting vacation homes
    • 1. Use platforms like Airbnb or Vrbo
      • What is this about?
    • 2. Rent through social networks
    • 3. Adapt an area for commercial premises
    • 4. Offer only the rent of a room
    • 5. Rent out the garden or garage
  • How to generate more income with the same space?
  • Factors to consider before buying to rent
    • 1. Accessibility and connectivity
    • 2. Growth projection
    • 3. Area Security
    • 4. Amenities
  • What are the best areas to invest in Mexico?
  • Why build a house investing in Gran Vía?
  • Make your money grow by investing in a vacation home

What are vacation homes?

To begin with, we must define what a vacation home is: as its name indicates, it is a property designed to enjoy your own space while you are traveling.

Vacation homes offer you all the comforts of home, in addition to having the independence that a hotel and other similar types of accommodation do not offer, they are an excellent option to rest in a more private environment and with greater freedoms.

You can find vacation home rentals in oceanfront locations with access to private beaches and even luxury apartments in the middle of the city.

In this type of property they have amenities such as a swimming pool, balcony or terrace, gardens, parking, and even —if you are in a luxury residence— services such as a spa, massages, yoga, parks and many more.

Advantages of building a vacation home

Investing in a property is one of the safest investments you can make, whether you are going to live in it or not, especially if the location of your choice is in an area where capital gains are constantly increasing.

Among the main advantages of investing in a vacation home are:

1. Double benefit: vacation and produce an income

Building  a property of this type results in great benefits, because you will have at your disposal a house or apartment to vacation with your family, partner or friends in your favorite place and, above all, you will be able to rent it the rest of the year producing an income.

An advantage of buying a property is that it is a tangible asset, so inflation does not affect it as much as money.

2. The demand for vacation homes is on the rise

The sum in 2019 for vacation rental investments was estimated at $170 million according to Research and Markets, and — according to Market Insights Reports — a 5.8% growth in the vacation rental market is forecast during the forecast period of 2022-2028. 

This is because vacation homes offer a different type of accommodation than hotels. In addition, its popularity has been increasing thanks to platforms such as Airbnb and Vrbo, so the investment to acquire real estate for this purpose is increasing.

3. Produces a consistent return on investment

Profitability can be defined as the profit obtained on an investment; To do this, you must consider factors such as maintenance costs and payments for services and taxes.

Investing in real estate is safe since it can maintain or increase its value over the years, depending on several factors such as location, which has a direct impact on the capital gain of the property.

The value of your rent will go hand in hand with the value of your property, therefore, you must make sure that it has been manufactured with quality materials to avoid extra maintenance costs.

Similarly, the amenities and services with which it will be offered for rent play an important role when setting rates.

It is worth mentioning that this return on investment will be safer if it is acquired in areas near important tourist spots such as Fifth Avenue in Playa del Carmen. 

Also read: How to Invest in Real Estate in Times of Crisis

How to make money renting vacation homes

1. Use platforms like Airbnb or Vrbo

Hotels have been able to maintain their levels of visits, but —currently— young people opt for simpler options that provide them with greater freedom and privacy.

The popularity of these applications is evident thanks to technological advances, and it is becoming more and more common to think of renting a vacation home for a weekend or longer, thanks to the facilities found in this medium.

Whether the trips are made for pleasure or for work and business reasons, these applications have managed to position themselves among the favorites when looking for accommodation.

What is this about?

Travelers see vacation rentals as an opportunity to make their stay more interesting and a unique experience.

For example, when making a business trip, being able to stay in a luxury apartment with amenities such as a gym, spa, and swimming pool, among others, is more attractive than a conventional hotel room.

Similarly, spending a family stay in a house facing the sea, with all the comforts and services they may need, promises a more peaceful and relaxed trip.

In addition to the above, these types of services are reliable and safe , in addition, some of the aspects that make these platforms different are:

  • You will be part of a global travel community of more than 190 countries.
  • There is a relationship between travelers and hosts.
  • The customer support team is available 24/7 and in multiple languages.
  • Payment protection in case of fraud.
  • Emergency Assistance.

Thanks to this, it is that investing in a property of this type results in great benefits; you enjoy your own space in an exceptional place with all the amenities when you need to vacation, and the rest of the time you put it up for rent through platforms like Airbnb and Vrbo to ensure a passive income.

2. Rent through social networks

If you want to take charge of the entire process of personally offering and delivering the house to the tenants, then using social media is a good option, since you will maintain direct contact during the process.

Platforms like Facebook Marketplace are perfect for offering a vacation home for rent, especially if you want to keep it local.

3. Adapt an area for commercial premises

A different way to earn money with a vacation home is to adapt some of its areas for another purpose, such as commercial premises.

If you have a large enough space, or the location of the property is particularly advantageous, then you can resort to making the modifications with the help of an architect, to separate the living area from the premises.

4. Offer only the rent of a room

Even if you plan to live in the residence, an idea to generate extra income is to offer a free room for rent, in case there are several rooms. This works perfectly for students, professionals, and even foreigners on vacation.

This option is perfect to take advantage of that extra space without having to vacate the house, and still continue with a constant income.

5. Rent out the garden or garage

If your vacation home is located in a busy city with constant traffic —as is the case in Mexico City— one way to generate extra income is to offer the garage for rent. In places where finding parking space is so difficult, this option is a good way to generate income.

On the other hand, not all homes have spaces such as gardens or terraces, if this is the case of your vacation home then you can take advantage of it to rent it.

How to generate more income with the same space?

The same space for rent can generate better income if it is conditioned with this purpose in mind. 

If you plan that your vacation home will also be rented, it is important to consider some factors that mean that the same house can be offered at higher costs.

To begin with, decoration always plays an important role, since one of the first approaches that the possible client has is photographs. Similarly, make sure you have all the basic services, such as electricity and water; but also benefits such as wifi, air conditioning, etc. The higher the benefits, the better the rate and demand.

On the other hand, if you plan to build a vacation home, then you can plan its details not only to your preference but also to the possibilities offered by putting it up for rent.

And if you want to wait before building your vacation home, there is also the option of renting the land, always trying to make the lease contract to protect your assets.

Also read: 3 Benefits you did not know about investing in Real Estate

Factors to consider before buying to rent

If you want to invest in a vacation home to rent later, it is important that you take into account the following factors before buying:

1. Accessibility and connectivity

A property that is accessible and close to avenues that connect with important points in the city is a key factor for decision-making. 

For example, in a cosmopolitan city like Playa del Carmen, acquiring a residential lot on the main avenue offers better rental opportunities for any type of home that you want to develop in the future, given the facilities it offers to reach areas of tourist interest. like the beach or Fifth Avenue.

2. Growth projection

Another factor that you should consider when making an investment since it has an impact on the value of the property over the years as well as on the income that can be obtained.

3. Area Security

Many nationals and foreigners seek the tranquility of being located in a safe area, therefore, it is an essential point to consider before the purchase. Due to factors like this, many investors are constantly betting on the Mexican southeast.

4. Amenities

They are attractive —especially— when it comes to looking for a place to relax and enjoy a quiet vacation, so they influence the purchase decision in the same way.

Location is a factor that greatly influences the value of a property. You must be sure that the area has all the services with constant growth projections.

A property located near services such as hospitals, first-class schools, shopping malls, restaurants, and entertainment centers, among others, guarantees an increase in capital gains and investment.

What are the best areas to invest in Mexico?

Among the best areas of Mexico to invest in a property and vacation is the city of Merida and the Riviera Maya.

Cities like Playa del Carmen in the Riviera Maya are safe investments given the benefits it offers. 

To begin with, it is a world-famous tourist destination, which makes it the ideal place to invest thanks to its paradisiacal beaches, its pleasant tropical climate at any time of the year, its multiple natural attractions and the best in entertainment.

Imagine being able to enjoy the breeze and the view of the sea with its turquoise blue colors during your vacations, with the peace of mind of having a private place to stay during your stay.

Having a property in a place of great tourism such as the Riviera Maya guarantees you to obtain constant income by putting it up for rent as a vacation home, because it receives both national and international visitors throughout the year.

Why build a house investing in Gran Vía?

Taking into account the advantages of building a beautiful house and generating income while it is not inhabited, vacation home rentals are a great option to see a faster return on investment of your property.

Considering that location is such an important factor —and this triggers benefits such as guaranteed capital gains— we recommend that you get to know the development better: Gran Vía in Playa del Carmen.

Gran Vía represents a unique investment opportunity in the Mexican Caribbean, this development offers residential lots in an urbanized area, ready to build the home of your dreams.

This project provides numerous benefits:

  • To begin with, it is located in the Diamond Zone, on the Playa del Carmen-Cancún highway, a few minutes from Fifth Avenue and the beach.
  • It is also made up of residential, commercial and corporate lots.
  • Similarly, the Vizcaya University of the Americas is part of the development.

Due to factors like these, whether it is a business or a home, they will benefit from the amenities offered by Gran Vía. Don’t miss out on the opportunity to invest in your future, secure your money and make it grow.

Make your money grow by investing in a vacation home

Undoubtedly, real estate investment is safe, it guarantees that your money will grow and it is an excellent business option.

The facilities provided by the platforms for renting vacation homes allow you to start receiving income almost immediately.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Augus Curtis

I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make it and also to invest it. Here I share some ideas about business and money.

Related Topics
  • Investing
  • Investments
  • Markets
  • Money
  • Real Estates
Editor
Augus Curtis
I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make…
Featured Posts
  • Modeling Agency Earn 1
    How much a modeling agency earn
    • February 4, 2023 12:08 PM
  • Ethereum 2
    Why you should Invest in Ethereum this 2023
    • February 4, 2023 11:58 AM
  • Bitcoin what is 3
    Why you should Invest in Bitcoin this 2023
    • February 4, 2023 11:48 AM
  • Trump Organization 4
    This was the brazen tax evasion scheme of the Trump Organization
    • February 4, 2023 11:30 AM
  • What is LVMH 5
    What is LVMH: Owner of luxury brands
    • January 15, 2023 6:20 AM
Recent Posts
  • Google Business tools
    5 Google Apps for your online business
    • December 30, 2022 7:15 AM
  • Wordpress work
    10 Advantages of Using WordPress
    • December 30, 2022 6:43 AM
  • Servers hostings
    What Operating System to use in my VPS?
    • December 30, 2022 6:26 AM
Categories
  • Business (87)
  • Cryptocurrencies (34)
  • Lifestyle (42)
  • Money (101)
  • Opinion (74)
  • Travel (2)

ABOUT:

Money Investors is an economic and financial blog that wants to be a source of development of knowledge of the latest advances in studies related to the economy. Analyzing the various most relevant international opinion sources such as The Wall Street Journal, The Guardian, Market Watch, Market Times, BBC News, The New York Times and El País from Spain, we will provide diverse and eclectic approaches for understanding the economic panorama in depth, with a social and critical perspective of the various market players, as well as the institutions and structures that condition the behavior of these markets.

PRIVACY:

We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.

DISCLAIMER:

Money investors is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. Opinions expressed on this site are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. Money Investors exist to thought provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures.

Money Investors
  • About Us
  • Cookies Policy
  • Privacy Policy
  • DMCA
  • Term Of Use
  • RSS
  • Sitemap
  • Contact
© 2022 Money Investors LLC. A Curtis Times Company. All Rights Reserved.

Input your search keywords and press Enter.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT